IVA's...the negatives?

Fizz_Bomb

Hi all. I have been recommended an Iva by both pay plan and step change and am just waiting for my phone call on Monday coming from their iva team to see if I can proceed.
I'm terrified, full of self loathing and to be honest, still desperately trying to think of another way, which is looking hopeless.
I've been doing a lot of reAding online on forums and suchlike, and I have to ask a question, you'll have to forgive my ignorance or my being nieve, but a lot of the posts on the forums have been about how hard it was for the duration of the iva and how many of them fail etc. I guess I'm just curious, because I am currently paying £490 a month on repaying my debts (albeit borrowing from Peter pay Paul) and StepChange have recommended a monthly repayment of £140. Obviously this is a massive difference which would help me enormously...so I guess I'm just wondering how it could be hard if you're better off?
Sorry if this post offends or sounds stupid, I'm not intending that at all, I'm worried I'm missing something really. Obviously I'm fully aware of how serious an iva is so know about the impact on credit file etc.
Grateful for any replies.

sourcrates

In your case it sounds like the right choice.
You must remember to budget correctly, and it appears you have done that.
If your a property owner, you may have to remortgage in year 5 to release more funds for the benefit of your creditors, if your not, then an extra year of payments may be nessessary, your IP will advise you on this.
The biggest benefit to an IVA is the fact you have legal protection from creditor harrassment, it can be a long struggle, but your payment seems quite low, so hopefully you will manage it ok.

Then at the end of the arrangement, your remaining debt is written off, and you can start again, debt free.
Good luck with it !!

DorisTrousers

There are some other answers on the IVA/DRO thread you have posted as well.

Fizz_Bomb

Thank you both, very much. I guess i just need to hope that the £140 a month will be accepted then!

National_Debtline

Hi Fizz Bomb


The length of the commitment you would be entering into with an IVA - usually five years - is probably the biggest challenge. Whether that is a "negative" is in the eye of the beholder, I guess. I would normally expect that the IP could claim first dibs on any windfalls/inheritances/bonuses etc. that come your way during the IVA - that is standard procedure, but worth understanding nonetheless as it still seems to catch some people unawares.


As for the likelihood of £140pcm being accepted, I imagine Stepchange will expect that to be a formality, otherwise it would be a waste of their time putting the proposal together. Good luck with whatever course of action you end up taking, and remember that an IVA is a perfectly legitimate, everyday debt solution, so don't be too hard on yourself.


Dennis
@natdebtline

carrielovesfanta

National_Debtline wrote: »

. Good luck with whatever course of action you end up taking, and remember that an IVA is a perfectly legitimate, everyday debt solution, so don't be too hard on yourself.


Dennis
@natdebtline

^^
Definitely this

sourcrates

carrielovesfanta wrote: »

^^
Definitely this

Totally agree, keyboard warriors who have never experianced life within an IVA have absolutely no idea what there talking about, and it's usually been a very rocky road to get to that point In most cases !!!!!